Here’s A Fully Detailed Guide On The Business Model Of HP

Updated on: Sep 20, 2021
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My name is Aditya Shastri and I have written this case study with the help of my students from IIDE's online digital marketing courses in India.

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Interested in decoding the business model of HP? Read on to learn about how the tech giant flourished over the years.

The Hewlett-Packard Company (regularly referenced as HP) was an American global data innovation organization settled in Palo Alto, California. It created and gave a decent kind of equipment parts additionally as programming and related administrations to buyers, little and medium-sized organizations (SMBs), and colossal undertakings, remembering clients for the public authority, wellbeing, and instruction areas. 

HP has a mass-market plan of action, with no critical separation between clients. Its client portions are customers, little and medium-sized organizations (SMBs), and huge undertakings, remembering associations for the training, wellbeing, and government areas. 

This blog will cover HP’s plan of action of methodologies, HP offerings, and HP revenue streams – in short, the Business Model of HP. So, let’s start by learning more about the company.

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About HP

HP, prior alluded to as Hewlett-Packard, is an American worldwide organization. HP created and gave a wide assortment of equipment parts, just as programming and related administrations to shoppers, little and medium-sized organizations (SMBs), and enormous ventures, remembering clients for the public authority, wellbeing, and schooling areas. 

It bargains in data innovation, counselling, programming and equipment, and so on The organization was arranged by William Hewlett and David Packard in Palo Alto, California in the year 1939. In November 2015, the organization split into two as HP ventures and HP Inc. In these 78 years, HP had procured a ton of organizations to acquire authority in its industry.

The HP Garage at 367 Addison Avenue is presently assigned an authority California Historical Landmark, and is set apart with a plaque considering it the “Origin of ‘Silicon Valley'”. 

Now that we have an extensive view of the company, let us discuss the business model of HP in full length.


Business Model of HP

Hewlett-Packard is a large corporation with multiple product and service verticals in which it dabbles. Due to their differentiated nature of products, HP has to employ a highly variable business strategy to market all of them to their respective customers and market segments.

In order to intimately understand the business model of HP, let us start by learning more about its market share.


1. Business Model of HP – Market Share

HP secured the top spot in the U.S. PC market based on shipments with a 28.4% market share. HP Inc’s piece of the pie of worldwide PC unit shipments 2011-2021, by quarter Distributed by Thomas Alsop, Jul 15, 2021.

In the second quarter of 2021, Hewlett Packard’s piece of the pie of worldwide PC shipments remained at 20%, making HP the second biggest PC merchant generally behind just Lenovo. HP’s PC piece of the pie has for the most part expanded since 2012, except for a slight slump as of late, mirroring a general pattern of solidification inside the PC market.

The joined portion of worldwide PC shipments of the three significant merchants on the lookout (Lenovo, HP, and Dell) has ascended from around 40% in 2011 to in excess of 60% in 2020.

Zeroing in on gaming PCs As well as solidifying, the complete unit deals of PCs have declined over the previous decade also. HP has reacted to this by developing its item contributions for gamers, as this rewarding segment of purchasers update their units reasonably much of the time and spend critical amounts of cash on their PCs.

Appropriately, HP delivered their game-driven Omen brand of workstations and work areas designated at mid-range clients. HP additionally planned a portion of the Omen machines to run computer-generated reality (VR) frameworks like the Oculus Rift

Now, let’s move to the Product offerings of HP.


2. Business Model of HP –  Product Offerings

  • HP Monitors

Style meets substance in a strikingly modern business display crafted for optimal viewing, productivity, and ergonomics. Expand your visual workspace with flexible connectivity and comfort.

  • HP Accessories

Connect. Expand. Enhance. HP has all of the attachments and accessories you never knew you needed to make your digital experience even better. Whether cutting the cords or protecting your other HP devices while on the go, HP has you covered.

  • HP Desktops

Never think of towers the same way again. Power meets elegance when it comes to HP desktops. Your creative energy can’t be contained, and you need a machine that can keep up. Be ready for when inspiration strikes with HP.

  • HP All-in-One Desktops

Want the power and capacity of a desktop computer but don’t have the room? Now you do with HP’s lineup of All-In-One desktop computers. Get all the power and storage of a tower built right into a single package.

  • HP Notebooks

The thin, light, tough design of the HP notebooks gives mobile professionals powerful tools to stay productive. Equipped for life on the go, they deliver the performance and security features essential for today’s mobile workforce.

  • HP Convertible Notebooks

Get a new perspective on how to look at notebooks—literally. Flexibility meets technology in HP’s convertible notebooks. When versatility makes a difference, turn to HP.

  • HP Tablets and 2-in-1s

Small, thin, and light, HP tablets and 2-in-1s bring together a powerful combination of connectivity, portability, and performance to support both your home office and office needs. Whether using an HP Executive Pen or just your finger, a built-in touchscreen delivers the flexibility you need.

  • HP Thin Clients

Goodbye add-ons, extras, and optional features. Maximize your productivity with the latest thin client technologies packed into a sleek design that fits into a range of compact workspaces.

  • HP Mobile Workstations

Push the boundaries of performance without pushing the boundaries of portability. Combining world-class industrial design, world-class engineering, robust tools, and visual collaboration solutions, HP workstations take performance, innovation, and reliability to the next level to help give you and your business a competitive edge.

  • HP Desktop Workstations

Spend more time creating and less time waiting. HP workstations help you handle more, do more, and give you limitless creative possibilities. Built for high-end computing and visualization, they deliver the tools you need to handle the toughest workstreams.

  • HP Printers

Speed and colour are the perfect pair for your home office or business. Offering increased monthly page volumes and fewer interventions—and with dynamic security being a top priority—HP printers can help reduce printing and copying costs, all while offering full protection against unwanted threats.

  • HP Scanners

Capture every page and detect potential errors—every time while streamlining workflows with one-touch scanning. HP scanners offer these features and a whole lot more!

Along with a wide range of products, they have a very great pricing strategy for them so let’s have a brief description about that.


3. Business Model Of HP – Pricing Model

HP features a very in-depth product portfolio and hence a really diverse pricing home in its marketing mix.

It operates in computers, printers, workstations, and servers only but within these categories also the merchandise depth is high. So many variations to suit the requirements of companies. HP follows a good pricing strategy, it charges for the standard and expertise it gives within the field of hardware and software.

HP fights with competition supported its quality regime and supreme performance and after-sales services. Newer products with the newest innovative technologies are priced at a premium and because the competition enters the costs are reduced gradually.

To promote such a wide range of products one must have a great marketing and promotional strategy. So, to cover that we have a very next segment.


4. Business Model Of HP – Marketing Strategy

HP uses 360 brandings in its marketing mix for creating brand awareness. HP ad campaigns are spread across different media like TV, newspapers, magazines, website, billboards, etc. HP has a campaign called One Voice, this campaign was designed to resonate with the image of HP as a one-stop solution to hardware and software needs. The campaign was successfully integrated into its website and outdoor campaign as well.

HP also has an exchange program that allows exchanging old products for new ones. Other than regular discounts, sometimes HP has offered some services for free for a period of time in order to promote HP. HP has also played the sponsor in many sports like formula one and Premier League Club. Hence, this gives an insight into the marketing mix of HP.


5. Business Model of HP – Competitors

HP’s main competitors are Samsung Electronics, Microsoft, Huawei, Toshiba, Apple, Fujitsu, Lenovo, and Acer. HP is a company that provides personal computers and other access devices, imaging and printing products, and related technologies, solutions and services.

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HP’s success as the world’s second-largest information and technology company can be attributed to its effective management and coordination teams. Management makes strategic decisions to keep the company competitive in a highly competitive world.

The R&D team advises management on the best products and services that can be offered to the market. The department works closely with the sales and customer service department to meet the needs and requirements of customers.

With digital marketing, you can reach a large audience in a cost-effective and measurable way. One can save money and reach more customers with less cost than traditional marketing methods. Get to know your audience and get to know them, can help build brand loyalty.

Did you like our work? Do you want to acquire these skills? Attend our Free Masterclass with Karan Shah, CEO of IIDE, to gain hands-on experience with digital marketing. 

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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]


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